Global decarbonisation could turn fossil fuel-reliant economies into ‘stranded nations’ unable to unlock the value of carbon-based assets and infrastructure.

These are the findings of a new World Economic Forum study, which shows theworld’s sovereign wealth funds collectively own $8 trillion (£6.1tn) in assets butcurrently investjust 0.19% of this figure in green energy.

It says economies that are heavily dependent on fossil fuel resources with more than 10% of their total wealth based in carbon assets could become “stranded” – it says theymust act now to develop the “human capital and economic diversification” to continue to thrive.